EXHIBIT 12
PEPSICO, INC. AND SUBSIDIARIES
Computation of Ratio of Earnings to Fixed Charges
(in millions except ratio amounts, unaudited)
24 Weeks Ended | ||||||||
6/14/08 | 6/16/07 | |||||||
Earnings: | ||||||||
Income before income taxes | $ | 3,883 | $ | 3,590 | ||||
Unconsolidated affiliates interests, net | (150 | ) | (158 | ) | ||||
Amortization of capitalized interest | 2 | 4 | ||||||
Interest expense(a) | 132 | 96 | ||||||
Interest portion of rent expense(b) | 49 | 47 | ||||||
Earnings available for fixed charges | $ | 3,916 | $ | 3,579 | ||||
Fixed Charges: | ||||||||
Interest expense(a) | $ | 132 | $ | 96 | ||||
Capitalized interest | 7 | 9 | ||||||
Interest portion of rent expense(b) | 49 | 47 | ||||||
Total fixed charges | $ | 188 | $ | 152 | ||||
Ratio of Earnings to Fixed Charges(c) | 20.84 | 23.51 | ||||||
(a) | Excludes interest related to our reserves for income taxes as such interest is included in provision for income taxes. |
(b) | One-third of net rent expense is the portion deemed representative of the interest factor. |
(c) | Based on unrounded amounts. |